What is Sector Tax?
Tax can be defined as the obligation of individuals or institutions to pay a certain percentage of the income they earn in a certain period to the state they belong to. As tax is one of the most essential sources of income for the state, the state has supported it with various sanctions to guarantee its tax receivables. This is because the state needs to collect its tax revenues with minimal loss in order to fulfill its public services.
What is Sector in Commercial Terms? How Many Groups Do Sectors Consist Of?
A sector is the general name of the economy where firms or natural persons provide the same product and service in the same field of activity. It is possible to group sectors into 3 groups.
- Agriculture (Primary Sector)
- Industry
- Service
What Are the Types of Taxes?
Although there are many types of taxes in Turkey, the main types of taxes that come to mind are as follows: Income Tax, Corporate Tax, VAT, SCT, Stamp Duty, Customs Duty, Gambling Taxes, Special Communication Tax, and BSMV, which is applicable to institutions operating in the banking and insurance sectors. Although there are many types of taxes in the Turkish tax system, the question of who will be subject to which type of tax is frequently asked. First of all, we must state that income tax and corporate tax, which are the most basic types of taxes, are the types of taxes for which every natural person or institution operating to generate income must establish taxpayer status. To put it more simply, for example, the income of natural persons is subject to income tax, and the income of companies or institutions is subject to corporate tax. Based on this, there is no distinction made between sectors in terms of income tax and corporate tax; individuals and institutions operating for the purpose of generating income are taxed at the same rate regardless of the sector they operate in. So, in which tax type is sectoral tax important? Although sector tax is included in many types of taxes, it is more important in Value Added Tax, which is a tax levied on expenditure. However, individuals and institutions operating in different sectors may be subject to different tax rates.
Sector Tax and Value Added Tax
As stated above, natural persons and institutions will establish taxpayer status and be taxed at a certain rate without discrimination in terms of income tax and corporate tax, regardless of the sector in which they operate. However, the situation is different for Value Added Tax, which is levied on expenditure, and different tax rates have been determined for different sectors. These rates are determined as %1, %8, and depending on the type of goods and services sold. For example, the VAT rate for accommodation services of a company operating in the tourism sector is %8, while the rate for the production and delivery of bread by a company operating in the bakery sector is %1, and the rate for deliveries by a company operating in the construction sector is [implied rate, not specified]. It should also be remembered that these companies operating in different sectors will be taxed at the same rate according to the amount of profit without discrimination in terms of income tax and corporate tax.
